1.9m multifamily units to be developed in opportunity zones

About 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self-storage space are either in place or under construction in opportunity zones, according to a white paper from Yardi Matrix. The white paper notes opportunity zones have attracted intense interest from real estate investors because they “draw from a new base of largely untapped investors” and offer value-add opportunities in “new markets that were thought to be too small or risky…

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PCCP provides $152m senior loan for creative office property in Brooklyn

PCCP has provided a $152 million senior loan for the recapitalization and lease-up of 41 Flatbush Ave. in downtown Brooklyn, N.Y. Also known as The Pioneer Building, the property was a former warehouse/storage facility that was recently converted into class A creative office space. The ownership, a venture of Quinlan Development Group and Building and Land Technology (BLT), acquired the property in 2014. Since that time, it has invested in excess of $30 million in transformative capital improvements and…

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San Francisco and Houston high climbers among world’s most expensive cities

Singapore, followed by Hong Kong and Paris, is the world’s most expensive city, according to the Worldwide Cost of Living Survey from The Economist Intelligence Unit. This marks Singapore’s sixth consecutive year at the top of the rankings. The Economist Intelligence Unit survey, which compares prices across 160 products and services, finds living costs in Singapore, Hong Kong and Paris are 7 percent higher than in New York City, the benchmark city. Two Swiss cities, Zurich and Geneva, and…

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New York Life originates $94m mortgage loan for office building in San Mateo, Calif.

New York Life Real Estate Investors, on behalf of New York Life Insurance Co., has announced the financing of 520 S. El Camino Real, a151,000-square-foot office building located in San Mateo, Calif. The 20-year bridge-to-permanent mortgage loan will finance a complete renovation of the office tower and provide two separate earnout options for Westlake Realty Group. The first earnout can be earned by achieving certain leasing hurdles during stabilization, and the second can be used to finance the future…

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CalPERS approves direct PE investment plan

The $356 billion California Public Employees’ Retirement System proposed a plan to expand its private equity program during its March 18 meeting. The CalPERS investment committee voted to continue the development of a new private equity business model that will include establishing vehicles to target longer-term private equity investments and late-stage venture capital and growth investments. CalPERS plans to allocate as much as $20 billion over the next decade to these new funds. CalPERS currently has approximately $27.64 billion…

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JLL to acquire HFF in $2b deal

Jones Lang LaSalle has agreed to acquire HFF Inc. in a cash-and-stock deal with an equity value of $2 billion. The transaction has been unanimously approved by the boards of directors of both companies. Mark Gibson, CEO of HFF, will join JLL as CEO, capital markets, Americas and co-chair of JLL’s global capital markets board. The transaction is expected to close in the third quarter of 2019. Upon closing of the transaction, JLL shareholders are expected to own approximately…

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Tower Arch Capital holds $450m close for real estate fund

Tower Arch Capital, a Salt Lake City–based investment firm, has closed Tower Arch Partners II and its parallel investment entity (collectively, Fund II) with $450 million of capital commitments. Fund II closed at its hard cap and was oversubscribed. The fund’s investors include current and former management team members, foundations, diversified financial institutions, university endowments and family investment offices. Fund II’s investment focus will continue to be in the lower middle market, targeting transformational opportunities where founder and family-owned…

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BioMed Realty buys San Francisco Bay Area life science campus for $135m

BioMed Realty, a Blackstone portfolio company, has acquired the Emeryville Center for Innovation, located in Emeryville, Calif., for approximately $135 million. This latest investment allows BioMed Realty, an owner of approximately 4 million square feet of life science office space in the Bay Area, to continue capitalizing on the momentum and strong tenant demand in the San Francisco Bay Area life science market. This acquisition follows the successful signing of a long-term lease with AbbVie Inc. for 480,000 square feet in October 2018 at the first phase of…

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Mack-Cali rejects $2.4b offer, faces board takeover

Mack-Cali Realty Corp. has turned down an offer of more than $2.4 billion for its top waterfront and suburban office buildings, citing a “grossly inadequate” valuation. The would-be buyers were Bow Street Special Opportunities Fund XV (DWREI) and David Werner Real Estate Investments. However, the firms have plans to gain a majority position on Mack-Cali Realty Corp.’s board, which proposed its intent to nominate a majority slate of six candidates to stand for election to the board of directors…

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LACERA moves $535m of properties from Capri Capital Partners to DWS

The $56 billion Los Angeles County Employees Retirement Association (LACERA) has plans to transfer four apartment properties from Capri Capital Partners to DWS for $534.6 million, according to board meeting documents. The four properties include: Tower 801 located in Seattle; Park Lane Place located in Dallas; Esprit located in Marina Del Rey, Calif.; and Dominion Post Oak located in Houston. LACERA made the transfer as part of an asset management plan to increase its overall performance. The board meeting…

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